Mr. Charles Desjardins reports

PISTOL BAY RETAINS MPH CONSULTING LIMITED TO REVIEW HISTORICAL DATA

Pistol Bay Mining Inc. has retained MPH Consulting Ltd. to carry out a review of all historical geophysical surveys on the Dixie zinc-copper-silver projects, in preparation for a planned fall diamond drilling program. The Dixie projects are in the Confederation Lake greenstone belt, 35 kilometres southeast of Red Lake, Ont. The Confederation Lake belt is known for its numerous volcanogenic massive sulphide (VMS) deposits and occurrences.

During the course of previous exploration between 1977 and 2004 by Selco Ltd., BP Minerals, Noranda and Tribute Minerals Inc. (now Aurcrest Gold Inc.), numerous ground geophysical surveys were carried out, including magnetic surveying, horizontal loop electromagnetic, large-loop pulse EM surveys -- both surface and borehole, and a Titan 24 deep earth-imaging survey that comprises DCIP and magnetotelluric surveys, also including a borehole probe. The Titan 24 survey defined a new blind anomaly (that is, one which does not come to surface) beneath the Dixie 19 zone. Two diamond drill holes put down in 2002 tested what appeared to be the top of this zone. Drill hole DX2002-01 was reported to have intersected 1.25 metres averaging 9.71 per cent zinc, 0.20 per cent copper and 10.7 grams per tonne silver, and drill hole DX2002-04 reportedly cut 1.25 metres averaging 5.32 per cent Zn. These intersections were at vertical depths of 262 and 350 metres, respectively. No deeper drilling was done on this target, despite the interpretation that the top of the conductor was at 375 metres below surface.

A second, much larger and much deeper conductive anomaly was located approximately coincident with, but below the Dixie 20 anomaly. The conductive body, modelled by inversion of magnetotelluric data, has an irregular shape, but was reported to extend over an east-west length of 1,800 metres. One diamond drill hole, DX-2003-01A, may have intersected the top of the conductive zone. This hole cut a wide zone of altered felsic pyroclastic rocks, with variable pyrite content. The highest individual assays were 0.98 per cent Zn and 1.13 per cent Cu. Downhole electromagnetic surveying indicated that this hole had penetrated a large (up to 800 by 800 metres) conductive body close to its edge. Another model of the surface MT data suggested that the low-resistivity zone may trend close to north-south -- that is, subparallel to the survey lines and subparallel to the drill hole put down to test it. If this were the case, it might reflect a crosscutting alteration pipe of the type that forms below stratabound VMS deposits.

Because of the complexity of the historical data, the company has requested a critical review of all the past geophysical surveys that will lead to prioritizing targets for future exploratory drilling. The review will be carried out by Jeremy S. Brett, MSc, PGeo, senior geophysical consultant, at MPH Consulting.

Fieldwork has located drill hole collars on the Dixie 18, 19 and 20 zones. Further fieldwork will concentrate on the Dixie 17 zone. A differential GPS will then be used to precisely pinpoint drill hole collars to improve the accuracy of plans and cross-sections of the mineralized zones.

In addition to the lower Dixie 19 and Dixie 20 anomalies referred to, earlier drilling had located and partially delineated three separate mineralized zones, with the following highlights:

• The Dixie 17 zone, with reported drill intercepts that include a 9.5-metre core length averaging 7.34 per cent zinc and 1.4 per cent copper;
• The Dixie 19 zone, with reported drill intercepts over a 500-metre length, including 6.33 per cent zinc and 1.5 per cent copper, over a core length of 3.55 metres;
• The Dixie 18 zone, with reported drill intercepts over a length of 250 metres and to a depth of 150 metres, including 15.44 per cent zinc, 0.43 per cent copper and 20.9 grams per tonne silver, over a 4.3-metre core length; Noranda reported an estimated resource (non-NI 43-101 compliant) of 150,000 short tons averaging 14 per cent Zn.

Technical material in this news release has been prepared and/or reviewed by Colin Bowdidge, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.